The World Bank Group (WBG) and the International Monetary Fund (IMF) are intensifying their collaboration through an enhanced framework aimed at helping countries scale up climate action. This joint effort seeks to provide critical support for national climate strategies via an integrated, country-led approach to policy reforms and climate investments.
The cooperation will leverage the analytical capabilities, technical assistance, financing, and policy expertise of both institutions to bolster country-driven reform programs. The framework is underpinned by three key principles:
First, countries, the WBG, and the IMF will work together closely to identify each nation’s specific climate challenges and the necessary policy reforms. This process will be informed by the WBG’s Country Climate and Development Reports (CCDRs), the IMF’s climate-related analytics, and countries’ own climate ambitions.
Second, both organizations will collaborate with other Multilateral Development Banks and development partners to assist countries in implementing these reforms through technical assistance and financing.
Third, upon request, the WBG and IMF will help establish country-led platforms designed to mobilize additional climate finance from various sources, including the private sector.
This enhanced framework builds on lessons learned since the release of their Joint Statement on Enhancing IMF-World Bank Collaboration in September 2023. It aims to foster partnerships driven by individual countries' needs, galvanize policy changes, and scale up investments to meet climate goals. Additionally, it seeks to optimize resources dedicated to climate action while attracting further contributions from development partners and private entities.
The World Bank Group is increasing its commitment to climate action with new measures such as allocating 45 percent of annual financing to climate change adaptation and mitigation by 2025. It also aims to bring renewable power to 250 million people in Africa by 2030 and expand its crisis toolkit for those on the front lines of the climate crisis. Furthermore, it has optimized its balance sheet for a robust IDA21 replenishment and established a new Livable Planet Fund.
The IMF is aiding countries in building resilience against climate change through its Resilience and Sustainability Trust (RST), funded by contributions from 23 nations. Since becoming operational in October 2022, 18 countries have benefited from this trust. The enhanced WBG-IMF collaboration framework is expected to further amplify the impact of Special Drawing Rights channeled through the RST.